United States bans Russian oil imports

A United States ban on the import of Russian oil, liquefied natural gas and coal was made official on March 8 as President Joe Biden signed an executive order.

This ban, a response to Russia’s invasion of Ukraine, will “further deprive President Putin of the economic resources he uses to continue his needless war of choice,” a White House news release said.

Last year alone, the U.S. imported nearly 700,000 barrels per day of crude oil and refined petroleum products from Russia, according to the news release.

The executive order will not only eliminate billions of dollars in revenue from U.S. consumers but also bans new U.S. investment in Russia’s energy sector and prohibits Americans from financing or enabling foreign companies that are making investments to produce energy in Russia.

The ban coincides with the price of fuel averaging more than $5 per gallon in some regions, a direct result of the Russian invasion, said the White House news release.

As a result, the International Energy Agency member countries agreed to release an initial 60 million barrels of crude oil from petroleum reserves in an effort to reduce dependence on foreign oil and lower costs nationwide.

The U.S. is committing to releasing half of those 60 million barrels and is maintaining conversations with a range of energy producers and consumers on maintaining a stable global supply of energy, according to the news release.

What’s more, U.S. oil and gas production is approaching record highs, according to the news release. The Biden administration reiterated that in the short term, supply must keep up with demand. However, oil and gas companies as well as their financers should not use this war as an excuse for excessive pricing.

“The only way to eliminate Putin’s and every other producing country’s ability to use oil as an economic weapon is to reduce our dependency on oil,” the news release stated. “This is a shared goal with our European allies that we will work together to achieve.” LL